The Federal Trade Commission has sued Charlotte, N.C.-based Novant Health to block its $320 million bid to purchase two area hospitals and build a new ASC in Mooresville, N.C., according to a Jan. 25 report from The Charlotte Observer.
The hospitals in question — Mooresville, N.C.-based Lake Norman Regional Medical Center and Statesville, N.C.-based Davis Regional Medical Center, a behavioral health center — are both owned by Franklin, Tenn.-based Community Health Systems.
The FTC's complaint alleges that Novant already operates a medical center just 11 miles away from Lake Norman, and it is among the largest systems in the Southeast. The FTC complaint also says Novant is "one of the most expensive hospital systems in North Carolina," according to a Jan. 25 news release.
The proposed deal also includes a group of 24 physicians employed by Lake Norman, a majority interest in an endoscopy center in Mooresville and an entity holding a certificate of need to build the ASC.
If the deal passes, Novant would own approximately 65% of the market for inpatient general acute care services in the area, according to the FTC. The complaint also alleges that annual healthcare costs would increase by several million dollars.
The commission voted 3-0 to issue an administrative complaint and authorize staff to seek a temporary restraining order and preliminary injunction in federal court against the acquisition, according to the report.
"There is overwhelming evidence that Novant's deal with Community Health Systems will be detrimental to patients, including leading to higher out-of-pocket costs for critical health care services," Henry Liu, director of the FTC's Bureau of Competition, told the Observer.
"As a nationally recognized leader in quality and patient safety, Novant Health is committed to delivering the highest-quality, patient-centered, physician-directed care to the communities served by Lake Norman and Davis Regional Medical Centers," a Novant spokesperson told Becker's. "As we keep that commitment across North Carolina, including throughout the Greater Charlotte area, we will pursue available legal responses to the FTC's flawed position announced today. We remain confident that Novant Health can bring exceptional care, leading-edge innovation, and long-term stability to Lake Norman and Davis Regional Medical Centers."